Host Hotels & Resorts, Inc. Reports Second Quarter 2023 Results
*The Ritz-Carlton, Naples Reopens*
*Completion of the Marriott Transformational Capital Program*
BETHESDA, Md., Aug. 02, 2023 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced results for second quarter of 2023.
*Operating Results*
(unaudited, in millions, except per share and hotel statistics)
*Quarter ended June 30,* *Year-to-date ended June 30,* *2023* *2022* *Percent Change* *2023* *2022* *Percent Change*
Revenues $ 1,393 $ 1,381 0.9 % $ 2,774 $ 2,455 13.0 %
Comparable hotel revenues⁽¹⁾ 1,375 1,324 3.9 % 2,728 2,334 16.9 %
Comparable hotel Total RevPAR⁽¹⁾ 367.54 353.95 3.8 % 366.74 313.73 16.9 %
Comparable hotel RevPAR⁽¹⁾ 225.12 219.23 2.7 % 221.46 192.82 14.9 %
Net income $ 214 $ 260 (17.7 )% $ 505 $ 378 33.6 %
EBITDAre⁽¹⁾ 446 506 (11.9 )% 890 812 9.6 %
Adjusted EBITDAre⁽¹⁾ 446 500 (10.8 )% 890 806 10.4 %
Diluted earnings per common share 0.29 0.36 (19.4 )% 0.70 0.52 34.6 %
NAREIT FFO per diluted share⁽¹⁾ 0.53 0.58 (8.6 )% 1.07 0.97 10.3 %
Adjusted FFO per diluted share⁽¹⁾ 0.53 0.58 (8.6 )% 1.08 0.97 11.3 %
* Additional detail on the Company’s results, including data for 22 domestic markets, is available in the Second Quarter 2023 Supplemental Financial Information on the Company’s website at www.hosthotels.com.
James F. Risoleo, President and Chief Executive Officer, said, “Host delivered comparable hotel RevPAR growth of 2.7% over the second quarter of 2022, which is noteworthy given the challenging comparison of the prior year. Our results were driven by improvements in the group business segment and continued rate strength across the portfolio, despite some moderation at our resort properties. Overall, transient demand was affected by headwinds in San Francisco and Seattle and elevated international outbound travel without a corresponding increase in international inbound travel, which led to RevPAR results below our second quarter guidance range. At the same time, comparable hotel Total RevPAR grew 3.8%, which is evidence of the continued strength of out-of-room spend.”
Risoleo continued, “During the second quarter, we continued to execute on our capital allocation strategy with the reopening of the transformed Ritz-Carlton, Naples and the completion of the Marriott Transformational Capital Program, further improving the quality of our iconic portfolio. In addition, we tightened our full year RevPAR growth guidance range to 7.0% to 9.0%, based on our performance for the first half of year and the macroeconomic backdrop for the second half of the year. We believe that our balance sheet, diversified portfolio, and renovated assets leave Host uniquely positioned to deliver elevated EBITDA growth in the future.”
^(1) NAREIT Funds From Operations (“FFO”) per diluted share, Adjusted FFO per diluted share, EBITDAre, Adjusted EBITDAre and comparable hotel revenues are non-GAAP (U.S. generally accepted accounting principles) financial measures within the meaning of the rules of the Securities and Exchange Commission (“SEC”). See the Notes to Financial Information on why the Company believes these supplemental measures are useful, reconciliations to the most directly comparable GAAP measure, and the limitations on the use of these supplemental measures. Additionally, comparable hotel results and statistics include adjustments for dispositions, acquisitions and non-comparable hotels. See Hotel Operating Data for RevPAR results of the portfolio based on the Company's ownership period without these adjustments.
*HIGHLIGHTS:*
· Comparable hotel Total RevPAR was $367.54 for the second quarter and $366.74 year-to-date, representing an increase of 3.8% and 16.9%, respectively, compared to the same periods in 2022. Comparable hotel RevPAR was $225.12 in the second quarter and $221.46 year-to-date, representing an increase of 2.7% and 14.9%, respectively, compared to the same periods in 2022, primarily driven by an increase in average rate of 2.4% for the quarter and 3.5% year-to-date. Growth in city center markets led to the overall improvement, offsetting moderating rates at resorts in comparison to an exceptionally strong second quarter in 2022.
· Generated GAAP net income of $214 million in the second quarter, a decline compared to the second quarter of 2022 and reflecting GAAP operating profit margin of 17.9% for the quarter, a decrease of 580 basis points compared to the second quarter of 2022. Year-to-date, GAAP net income of $505 million reflected an increase compared to 2022, primarily due to an increase in operating profit and gain on asset sales, while GAAP operating profit margin declined 40 basis points compared to 2022 to 17.9%.
· Comparable hotel EBITDA was $449 million and Adjusted EBITDAre was $446 million for the second quarter, representing a decline compared to 2022 second quarter results, and reflecting a decrease in comparable hotel EBITDA margin of 440 basis points to 32.7%. Year-to-date, comparable hotel EBITDA was $888 million and Adjusted EBITDAre was $890 million.
· As expected, in addition to higher insurance and utility expenses, second quarter margin declines were driven by stabilized staffing levels in comparison to second quarter of 2022.
· Announced the reopening of The Ritz-Carlton, Naples on July 6, 2023, following restoration efforts as a result of Hurricane Ian in September 2022. The reopening introduced transformational renovations to all guestrooms and suites as well as the new tower expansion and a reimagined arrival experience. The final phase of reconstruction at the Hyatt Regency Coconut Point, the resort's waterpark, was also completed and reopened in June. As of August 2, 2023, the Company has received $113 million of property insurance proceeds from its related claims, of the expected potential insurance recovery of approximately $310 million for covered costs. The proceeds received to date have all been classified as property damage and no gain related to Hurricane Ian has been recognized.
· Completed the final project of the Marriott Transformational Capital Program with the renovation of the Washington Marriott at Metro Center. The program, which began in 2018, included extensive guestroom and public area renovations at 16 assets and finished under budget.
· Achieved a milestone in the Company's progress towards its renewable energy goal, resulting in a 2.5 basis point reduction in the interest rate on the outstanding term loans under the Company's sustainability-linked credit facility.
· Comparable hotel RevPAR for July is estimated to be $209, a 2.5% improvement over 2022.
*BALANCE SHEET*
The Company maintains a robust balance sheet, with the following balances at June 30, 2023:
· Total assets of $12.4 billion.
· Debt balance of $4.2 billion, with an average maturity of 4.7 years, an average interest rate of 4.5%, and no significant maturities until April 2024.
· Total available liquidity of approximately $2.5 billion, including furniture, fixtures and equipment escrow reserves of $213 million and $1.5 billion available under the revolver portion of the credit facility.
*DIVIDENDS*
The Company paid a second quarter common stock cash dividend of $0.15 per share, an increase of $0.03 or 25% over its first quarter dividend, on July 17, 2023 to stockholders of record on June 30, 2023. All future dividends, including any special dividends, are subject to approval by the Company’s Board of Directors.
*HOTEL BUSINESS MIX UPDATE*
The Company’s customers fall into three broad groups: transient, group and contract business, which accounted for approximately 65%, 32%, and 3% respectively, of its 2022 room sales.
The following are the results for transient, group and contract business in comparison to 2022 performance, for the Company's current portfolio:
*Quarter ended June 30, 2023* *Year-to-date ended June 30, 2023* *Transient* *Group* *Contract* *Transient* *Group* *Contract*
Room nights (in thousands) 1,517 1,085 174 2,849 2,123 332
Percent change in room nights vs. same period in 2022 (0.8 )% 0.0 % 12.6 % 3.7 % 22.5 % 12.0 %
Rooms revenues (in millions) $ 517 $ 292 $ 33 $ 992 $ 593 $ 62
Percent change in revenues vs. same period in 2022 0.8 % 4.2 % 23.8 % 6.4 % 30.7 % 30.2 %
*CAPITAL EXPENDITURES *
The following presents the Company’s capital expenditures spend through the second quarter of 2023 and the forecast for full year 2023 (in millions):
*Year-to-date ended June 30, 2023* *2023 Full Year Forecast* *Actual* *Low-end of range* *High-end of range*
ROI - Marriott Transformational Capital Program $ 18 $ 25 $ 30
All other return on investment ("ROI") projects 79 200 220
Total ROI Projects 97 225 250
Renewals and Replacements ("R&R") 133 275 300
R&R and ROI Capital expenditures 230 500 550
R&R - Insurable Reconstruction 93 125 175
Total Capital Expenditures $ 323 $ 625 $ 725
*2023 OUTLOOK *
Based on performance in the first half of the year and the macroeconomic backdrop for the second half, the Company tightened its full year comparable hotel RevPAR guidance range to 7.0% to 9.0% growth over 2022, bringing the midpoint of its full year expected RevPAR growth to 8%. At the midpoint of guidance, the Company’s full year 2023 expected RevPAR is forecast to be 5.6% above 2019.
In the second half of the year, the Company expects year-over-year comparable hotel RevPAR percentage changes to be up low-single digits at the midpoint of guidance.
In comparison to 2019, which the Company believes is the most relevant comparison, operating profit margins are expected to decrease 10 basis points and comparable hotel EBITDA margins are expected to increase 40 basis points at the midpoint of guidance. However, as expected, margins declined in the second quarter in comparison to 2022, driven by closer to stable staffing levels, higher wages, insurance and utility expenses, lower attrition and cancelation fees, and occupancy below 2019 levels. The second quarter decline is expected to be the largest year-over-year decline and margins are expected to continue to moderate for the remainder of the year. In addition, the guidance range does not include any expected gains from business interruption proceeds related to Hurricane Ian at this time, as timing of any recognition is uncertain.
The Company anticipates its 2023 operating results as compared to 2022 will be in the following range:
*Current Full Year 2023 Guidance* *Current Full Year 2023 Guidance Change vs. 2022* *Previous Full Year 2023 Guidance Change vs. 2022* *Change in Full Year 2023 Guidance to the Mid-Point*
Comparable hotel Total RevPAR $341 to $347 7.2% to 9.0% 7.7% to 10.5% (80) bps
Comparable hotel RevPAR $210 to $214 7.0% to 9.0% 7.5% to 10.5% (100) bps
Total revenues under GAAP $5,246 to $5,338 6.9% to 8.8% 7.3% to 10.1% (80) bps
Operating profit margin under GAAP 14.1% to 14.8% (170) bps to (100) bps (140) bps to (30) bps (50) bps
Comparable hotel EBITDA margin 29.7% to 30.1% (210) bps to (170) bps (200) bps to (130) bps (30) bps
Based upon the above parameters, the Company estimates its 2023 guidance as follows:
*Current Full Year 2023 Guidance* *Previous Full Year 2023 Guidance* *Change in Full Year 2023 Guidance to the Mid-Point*
Net income (in millions) $700 to $748 $713 to $793 $ (28 )
Adjusted EBITDAre (in millions) $1,535 to $1,585 $1,545 to $1,625 $ (25 )
Diluted earnings per common share $0.97 to $1.03 $0.98 to $1.09 $ (0.04 )
NAREIT FFO per diluted share $1.82 to $1.88 $1.83 to $1.94 $ (0.04 )
Adjusted FFO per diluted share $1.82 to $1.89 $1.84 to $1.95 $ (0.04 )
See the 2023 Forecast Schedules and the Notes to Financial Information for items that may affect forecast results and the Second Quarter 2023 Supplemental Financial Information for additional detail on the mid-point of full year 2023 guidance.
*ABOUT HOST HOTELS & RESORTS *
Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 72 properties in the United States and five properties internationally totaling approximately 41,900 rooms. The Company also holds non-controlling interests in seven domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott^®, Ritz-Carlton^®, Westin^®, Sheraton^®, W^®, St. Regis^®, The Luxury Collection^®, Hyatt^®, Fairmont^®, Hilton^®, Four Seasons^®, Swissôtel^®, ibis^® and Novotel^®, as well as independent brands. For additional information, please visit the Company’s website at www.hosthotels.com.
Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements which include, but may not be limited to, our expectations regarding the impact of the COVID-19 pandemic on our business, the recovery of travel and the lodging industry, the impact of Hurricane Ian and 2023 estimates with respect to our business, including our anticipated capital expenditures and financial and operating results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to, those described in the Company’s annual report on Form 10-K and other filings with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of August 2, 2023 and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
* This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.
*** Tables to Follow ***
Host Hotels & Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of June 30, 2023, which are non-controlling interests in Host LP in our consolidated balance sheets and are included in net (income) loss attributable to non-controlling interests in our condensed consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K.
*HOST HOTELS & RESORTS, INC. *
*Condensed Consolidated Balance Sheets *
(unaudited, in millions, except shares and per share amounts) *June 30, *
*2023* *December 31, *
*2022*
*ASSETS*
Property and equipment, net $ 9,717 $ 9,748
Right-of-use assets 555 556
Due from managers 87 94
Advances to and investments in affiliates 144 132
Furniture, fixtures and equipment replacement fund 213 200
Notes receivable 485 413
Other 362 459
Cash and cash equivalents 802 667
Total assets $ 12,365 $ 12,269
*LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY*
Debt⁽¹⁾
Senior notes $ 3,117 $ 3,115
Credit facility, including the term loans of $997 and $998, respectively 987 994
Mortgage and other debt 106 106
Total debt 4,210 4,215
Lease liabilities 567 568
Accounts payable and accrued expenses 209 372
Due to managers 67 67
Other 167 168
Total liabilities 5,220 5,390
Redeemable non-controlling interests - Host Hotels & Resorts, L.P. 168 164
Host Hotels & Resorts, Inc. stockholders’ equity:
Common stock, par value $0.01, 1,050 million shares authorized,
711.4 million shares and 713.4 million shares issued and
outstanding, respectively 7 7
Additional paid-in capital 7,671 7,717
Accumulated other comprehensive loss (70 ) (75 )
Deficit (636 ) (939 )
Total equity of Host Hotels & Resorts, Inc. stockholders 6,972 6,710
Non-redeemable non-controlling interests—other consolidated
partnerships 5 5
Total equity 6,977 6,715
Total liabilities, non-controlling interests and equity $ 12,365 $ 12,269
___________
(1) Please see our Second Quarter 2023 Supplemental Financial Information for more detail on our debt balances and financial covenant ratios under our credit facility and senior notes indentures.
*HOST HOTELS & RESORTS, INC.*
*Condensed Consolidated Statements of Operations *
(unaudited, in millions, except per share amounts) *Quarter ended *
*June 30,* *Year-to-date ended *
*June 30,* *2023* *2022* *2023* *2022*
*Revenues*
Rooms $ 850 $ 850 $ 1,670 $ 1,505
Food and beverage 415 405 846 702
Other 128 126 258 248
Total revenues 1,393 1,381 2,774 2,455
*Expenses*
Rooms 201 189 394 349
Food and beverage 263 245 532 445
Other departmental and support expenses 323 300 638 573
Management fees 69 62 134 102
Other property-level expenses 93 78 184 162
Depreciation and amortization 168 162 337 334
Corporate and other expenses⁽¹⁾ 30 25 61 48
Gain on insurance and business interruption
settlements (3 ) (7 ) (3 ) (7 )
Total operating costs and expenses 1,144 1,054 2,277 2,006
*Operating profit* 249 327 497 449
Interest income 20 6 34 7
Interest expense (45 ) (37 ) (94 ) (73 )
Other gains — 1 69 14
Equity in earnings of affiliates 4 2 11 4
*Income before income taxes* 228 299 517 401
Provision for income taxes (14 ) (39 ) (12 ) (23 )
*Net income* 214 260 505 378
Less: Net income attributable to non-controlling interests (4 ) (4 ) (8 ) (6 )
*Net income attributable to Host Inc.* $ 210 $ 256 $ 497 $ 372
*Basic earnings per common share* $ 0.30 $ 0.36 $ 0.70 $ 0.52
*Diluted earnings per common share* $ 0.29 $ 0.36 $ 0.70 $ 0.52
___________
(1) Corporate and other expenses include the following items:
*Quarter ended June 30,* *Year-to-date ended June 30,* *2023* *2022* *2023* *2022*
General and administrative costs $ 20 $ 20 $ 41 $ 38
Non-cash stock-based compensation expense 6 5 13 10
Litigation accruals 4 — 7 —
Total $ 30 $ 25 $ 61 $ 48
*HOST HOTELS & RESORTS, INC.*
*Earnings per Common Share *
(unaudited, in millions, except per share amounts) *Quarter ended June 30,* *Year-to-date ended June 30,* *2023* *2022* *2023* *2022*
Net income $ 214 $ 260 $ 505 $ 378
Less: Net income attributable to non-controlling interests (4 ) (4 ) (8 ) (6 )
Net income attributable to Host Inc. $ 210 $ 256 $ 497 $ 372
Basic weighted average shares outstanding 711.3 714.8 712.3 714.6
Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market 1.9 2.2 1.9 2.2
Diluted weighted average shares outstanding⁽¹⁾ 713.2 717.0 714.2 716.8
Basic earnings per common share $ 0.30 $ 0.36 $ 0.70 $ 0.52
Diluted earnings per common share $ 0.29 $ 0.36 $ 0.70 $ 0.52
___________
(1) Dilutive securities may include shares granted under comprehensive stock plans, preferred operating partnership units (“OP Units”) held by non-controlling limited partners and other non-controlling interests that have the option to convert their limited partnership interests to common OP Units. No effect is shown for any securities that were anti-dilutive for the period.
*HOST HOTELS & RESORTS, INC.*
*Hotel Operating Data for Consolidated Hotels^(1)*
*Comparable Hotel Results by Location*
As of June 30, 2023 Quarter ended June 30, 2023 Quarter ended June 30, 2022
*Location* No. of
Properties No. of
Rooms Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Percent
Change in
RevPAR Percent
Change in
Total RevPAR
Maui/Oahu 4 2,006 $ 594.07 73.7 % $ 437.96 $ 678.06 $ 567.20 78.0 % $ 442.56 $ 690.02 (1.0 )% (1.7 )%
Miami 2 1,033 538.70 69.6 374.98 646.85 618.60 67.4 416.89 697.72 (10.1 ) (7.3 )
Jacksonville 1 446 549.95 82.1 451.53 974.60 572.46 81.1 463.99 974.04 (2.7 ) 0.1
Phoenix 3 1,545 372.81 73.6 274.51 651.73 394.21 76.0 299.63 677.94 (8.4 ) (3.9 )
Florida Gulf Coast 3 941 387.60 76.3 295.81 615.07 386.13 79.0 304.90 640.76 (3.0 ) (4.0 )
Orlando 2 2,448 363.44 73.4 266.90 542.00 402.61 73.8 297.06 580.59 (10.2 ) (6.6 )
New York 2 2,486 346.21 84.3 291.87 423.84 326.39 80.3 261.97 385.41 11.4 10.0
Los Angeles/Orange County 3 1,067 297.22 82.4 245.01 352.37 278.61 87.4 243.48 356.01 0.6 (1.0 )
San Diego 3 3,294 281.16 83.1 233.70 432.22 271.84 81.0 220.07 391.37 6.2 10.4
Washington, D.C. (CBD) 5 3,240 312.23 78.0 243.43 346.51 286.32 77.0 220.58 312.13 10.4 11.0
Boston 2 1,496 293.70 83.0 243.74 311.38 277.40 60.7 168.38 223.59 44.8 39.3
Austin 2 767 257.48 70.8 182.18 327.53 272.13 80.7 219.57 383.03 (17.0 ) (14.5 )
Philadelphia 2 810 249.51 83.5 208.44 327.91 229.82 86.6 199.08 303.95 4.7 7.9
Northern Virginia 2 916 261.74 73.7 192.88 292.30 228.38 75.8 173.05 266.99 11.5 9.5
San Francisco/San Jose 6 4,162 235.44 66.6 156.72 230.73 237.03 72.7 172.26 237.65 (9.0 ) (2.9 )
New Orleans 1 1,333 208.75 75.0 156.55 241.38 219.22 76.4 167.55 237.37 (6.6 ) 1.7
Chicago 3 1,562 278.93 76.2 212.54 303.24 253.18 74.0 187.35 260.67 13.4 16.3
San Antonio 2 1,512 214.90 63.9 137.37 219.40 202.69 70.3 142.44 213.86 (3.6 ) 2.6
Houston 5 1,942 208.54 72.3 150.82 207.78 184.11 67.1 123.53 175.70 22.1 18.3
Atlanta 2 810 194.10 76.0 147.44 239.70 186.06 77.5 144.28 236.30 2.2 1.4
Seattle 2 1,315 241.55 72.9 176.09 237.33 228.80 74.6 170.62 218.92 3.2 8.4
Denver 3 1,340 196.19 66.2 129.88 190.82 188.02 69.4 130.52 189.86 (0.5 ) 0.5
Other 10 3,061 287.69 69.7 200.45 306.65 272.79 66.3 180.80 267.34 10.9 14.7
Domestic 70 39,532 306.78 74.7 229.05 374.40 300.38 74.6 224.05 361.94 2.2 3.4
International 5 1,499 193.42 62.7 121.31 184.99 155.80 59.0 91.91 140.79 32.0 31.4
All Locations 75 41,031 303.29 74.2 225.12 367.54 296.18 74.0 219.23 353.95 2.7 3.8
*
Comparable Hotel Results by Location*
As of June 30, 2023 Year-to-date ended June 30, 2023 Year-to-date ended June 30, 2022
*Location* No. of
Properties No. of
Rooms Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Percent
Change in
RevPAR Percent
Change in
Total RevPAR
Maui/Oahu 4 2,006 $ 599.89 75.0 % $ 449.74 $ 689.14 $ 556.16 77.2 % $ 429.37 $ 665.56 4.7 % 3.5 %
Miami 2 1,033 594.02 73.8 438.09 753.95 677.26 69.1 468.18 758.30 (6.4 ) (0.6 )
Jacksonville 1 446 532.21 74.7 397.60 872.26 555.35 70.8 393.31 846.75 1.1 3.0
Phoenix 3 1,545 455.18 78.0 355.17 764.31 442.80 74.8 331.38 709.91 7.2 7.7
Florida Gulf Coast 3 941 433.52 80.2 347.70 747.93 434.49 79.5 345.27 699.72 0.7 6.9
Orlando 2 2,448 395.90 74.7 295.85 591.62 427.24 66.0 281.89 534.73 5.0 10.6
New York 2 2,486 316.51 78.8 249.47 369.18 303.32 61.0 184.91 269.63 34.9 36.9
Los Angeles/Orange County 3 1,067 296.97 81.2 241.12 352.91 282.52 76.2 215.25 311.32 12.0 13.4
San Diego 3 3,294 282.01 80.1 225.75 427.16 265.79 71.3 189.62 343.77 19.1 24.3
Washington, D.C. (CBD) 5 3,240 293.53 71.1 208.82 304.05 269.82 57.9 156.21 222.15 33.7 36.9
Boston 2 1,496 256.23 76.1 195.06 262.66 235.57 54.2 127.70 168.31 52.8 56.1
Austin 2 767 273.23 70.4 192.43 343.15 274.92 71.3 196.03 334.68 (1.8 ) 2.5
Philadelphia 2 810 229.68 78.9 181.17 283.96 206.81 76.7 158.68 244.18 14.2 16.3
Northern Virginia 2 916 245.58 69.7 171.08 259.21 216.27 64.4 139.18 208.25 22.9 24.5
San Francisco/San Jose 6 4,162 261.73 63.7 166.68 249.04 221.94 58.9 130.72 188.52 27.5 32.1
New Orleans 1 1,333 215.24 74.0 159.23 240.08 212.83 66.2 140.90 202.78 13.0 18.4
Chicago 3 1,562 238.80 64.0 152.79 219.73 220.82 57.4 126.78 174.77 20.5 25.7
San Antonio 2 1,512 227.23 67.0 152.20 242.68 195.73 68.8 134.67 205.78 13.0 17.9
Houston 5 1,942 206.36 72.8 150.32 208.68 182.12 64.0 116.60 162.56 28.9 28.4
Atlanta 2 810 195.42 75.0 146.53 241.17 180.13 72.0 129.60 207.01 13.1 16.5
Seattle 2 1,315 223.18 63.1 140.79 196.97 211.55 55.1 116.53 153.56 20.8 28.3
Denver 3 1,340 185.96 57.5 106.90 152.98 173.91 57.4 99.84 146.61 7.1 4.3
Other 10 3,061 319.34 64.0 204.29 314.22 323.74 59.1 191.24 284.58 6.8 10.4
Domestic 70 39,532 314.70 71.7 225.60 374.31 304.95 64.8 197.64 321.78 14.1 16.3
International 5 1,499 182.51 61.5 112.29 165.31 133.14 49.3 65.66 99.56 71.0 66.1
All Locations 75 41,031 310.54 71.3 221.46 366.74 300.14 64.2 192.82 313.73 14.9 16.9
___________
(1) See the Notes to Financial Information for a discussion of comparable hotel operating statistics. CBD of a location refers to the central business district. Hotel RevPAR is calculated as room revenues divided by the available room nights. Hotel Total RevPAR is calculated by dividing the sum of rooms, food and beverage and other revenues by the available room nights.
*Results by Location - actual, based on ownership period*^*(1)*
As of June 30, 2023 2022 Quarter ended June 30, 2023 Quarter ended June 30, 2022
*Location* No. of
Properties No. of
Properties Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Percent
Change in
RevPAR Percent
Change in
Total RevPAR
Maui/Oahu 4 4 $ 594.07 73.7 % $ 437.96 $ 678.06 $ 567.20 78.0 % $ 442.56 $ 690.02 (1.0 )% (1.7 )%
Miami 2 2 538.70 69.6 374.98 646.85 596.12 68.2 406.35 676.00 (7.7 ) (4.3 )
Jacksonville 1 1 549.95 82.1 451.53 974.60 572.46 81.1 463.99 974.04 (2.7 ) 0.1
Phoenix 3 4 372.81 73.6 274.51 651.73 367.35 75.5 277.29 612.01 (1.0 ) 6.5
Florida Gulf Coast 5 5 347.63 56.5 196.31 418.07 411.67 70.2 288.94 598.02 (32.1 ) (30.1 )
Orlando 2 2 363.44 73.4 266.90 542.00 402.61 73.8 297.06 580.59 (10.2 ) (6.6 )
New York 2 2 346.21 84.3 291.87 423.84 313.84 78.3 245.88 361.64 18.7 17.2
Los Angeles/Orange County 3 3 297.22 82.4 245.01 352.37 278.61 87.4 243.48 356.01 0.6 (1.0 )
San Diego 3 3 281.16 83.1 233.70 432.22 271.84 81.0 220.07 391.37 6.2 10.4
Washington, D.C. (CBD) 5 5 312.23 78.0 243.43 346.51 286.32 77.0 220.58 312.13 10.4 11.0
Boston 2 2 293.70 83.0 243.74 311.38 277.40 60.7 168.38 223.59 44.8 39.3
Austin 2 2 257.48 70.8 182.18 327.53 272.13 80.7 219.57 383.03 (17.0 ) (14.5 )
Philadelphia 2 2 249.51 83.5 208.44 327.91 229.82 86.6 199.08 303.95 4.7 7.9
Northern Virginia 2 2 261.74 73.7 192.88 292.30 228.38 75.8 173.05 266.99 11.5 9.5
San Francisco/San Jose 6 6 235.44 66.6 156.72 230.73 237.03 72.7 172.26 237.65 (9.0 ) (2.9 )
New Orleans 1 1 208.75 75.0 156.55 241.38 219.22 76.4 167.55 237.37 (6.6 ) 1.7
Chicago 3 4 278.93 76.2 212.54 303.24 240.04 71.8 172.32 237.59 23.3 27.6
San Antonio 2 2 214.90 63.9 137.37 219.40 202.69 70.3 142.44 213.86 (3.6 ) 2.6
Houston 5 5 208.54 72.3 150.82 207.78 184.11 67.1 123.53 175.70 22.1 18.3
Atlanta 2 2 194.10 76.0 147.44 239.70 186.06 77.5 144.28 236.30 2.2 1.4
Seattle 2 2 241.55 72.9 176.09 237.33 228.80 74.6 170.62 218.92 3.2 8.4
Denver 3 3 196.19 66.2 129.88 190.82 188.02 69.4 130.52 189.86 (0.5 ) 0.5
Other 10 9 287.69 69.7 200.45 306.65 262.88 69.1 181.67 265.61 10.3 15.5
Domestic 72 73 306.27 73.8 226.00 370.80 300.15 74.3 223.13 362.34 1.3 2.3
International 5 5 193.42 62.7 121.31 184.99 155.80 59.0 91.91 140.79 32.0 31.4
All Locations 77 78 302.82 73.4 222.26 364.22 296.11 73.8 218.53 354.65 1.7 2.7
*
Results by Location - actual, based on ownership period*^*(1)*
As of June 30, 2023 2022 Year-to-date ended June 30, 2023 Year-to-date ended June 30, 2022
*Location* No. of
Properties No. of
Properties Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Percent
Change in
RevPAR Percent
Change in
Total RevPAR
Maui/Oahu 4 4 $ 599.89 75.0 % $ 449.74 $ 689.14 $ 556.16 77.2 % $ 429.37 $ 665.56 4.7 % 3.5 %
Miami 2 2 594.02 73.8 438.09 753.95 609.44 70.9 432.20 690.16 1.4 9.2
Jacksonville 1 1 532.21 74.7 397.60 872.26 555.35 70.8 393.31 846.75 1.1 3.0
Phoenix 3 4 446.98 78.0 348.64 738.46 412.40 74.7 307.94 643.07 13.2 14.8
Florida Gulf Coast 5 5 392.96 58.6 230.46 497.50 485.09 72.1 349.66 691.06 (34.1 ) (28.0 )
Orlando 2 2 395.90 74.7 295.85 591.62 427.24 66.0 281.89 534.73 5.0 10.6
New York 2 2 316.51 78.8 249.47 369.18 276.49 56.1 155.17 222.91 60.8 65.6
Los Angeles/Orange County 3 3 296.97 81.2 241.12 352.91 282.52 76.2 215.25 311.32 12.0 13.4
San Diego 3 3 282.01 80.1 225.75 427.16 265.79 71.3 189.62 343.77 19.1 24.3
Washington, D.C. (CBD) 5 5 293.53 71.1 208.82 304.05 269.82 57.9 156.21 222.15 33.7 36.9
Boston 2 2 256.23 76.1 195.06 262.66 228.61 51.8 118.39 155.01 64.8 69.4
Austin 2 2 273.23 70.4 192.43 343.15 274.92 71.3 196.03 334.68 (1.8 ) 2.5
Philadelphia 2 2 229.68 78.9 181.17 283.96 206.81 76.7 158.68 244.18 14.2 16.3
Northern Virginia 2 2 245.58 69.7 171.08 259.21 216.27 64.4 139.18 208.25 22.9 24.5
San Francisco/San Jose 6 6 261.73 63.7 166.68 249.04 221.94 58.9 130.72 188.52 27.5 32.1
New Orleans 1 1 215.24 74.0 159.23 240.08 212.83 66.2 140.90 202.78 13.0 18.4
Chicago 3 4 238.80 64.0 152.79 219.73 210.41 56.0 117.93 161.24 29.6 36.3
San Antonio 2 2 227.23 67.0 152.20 242.68 195.73 68.8 134.67 205.78 13.0 17.9
Houston 5 5 206.36 72.8 150.32 208.68 182.12 64.0 116.60 162.56 28.9 28.4
Atlanta 2 2 195.42 75.0 146.53 241.17 180.13 72.0 129.60 207.01 13.1 16.5
Seattle 2 2 223.18 63.1 140.79 196.97 211.55 55.1 116.53 153.56 20.8 28.3
Denver 3 3 185.96 57.5 106.90 152.98 173.91 57.4 99.84 146.61 7.1 4.3
Other 10 9 319.34 64.0 204.29 314.22 266.94 60.0 160.20 229.80 27.5 36.7
Domestic 72 73 314.56 70.9 223.06 371.22 302.36 64.3 194.28 317.04 14.8 17.1
International 5 5 182.51 61.5 112.29 165.31 133.14 49.3 65.66 99.56 71.0 66.1
All Locations 77 78 310.46 70.6 219.11 363.94 297.88 63.7 189.88 309.66 15.4 17.5
___________
(1) Represents the results of the portfolio for the time period of our ownership, including the results of non-comparable properties, dispositions through their date of disposal and acquisitions beginning as of the date of acquisition.
*HOST HOTELS & RESORTS, INC. *
*Schedule of Comparable Hotel Results ^(1)*
(unaudited, in millions, except hotel statistics) *Quarter ended June 30,* *Year-to-date ended June 30,* *2023* *2022* *2023* *2022*
Number of hotels 75 75 75 75
Number of rooms 41,031 41,031 41,031 41,031
Change in comparable hotel Total RevPAR 3.8 % — 16.9 % —
Change in comparable hotel RevPAR 2.7 % — 14.9 % —
Operating profit margin⁽²⁾ 17.9 % 23.7 % 17.9 % 18.3 %
Comparable hotel EBITDA margin⁽²⁾ 32.7 % 37.1 % 32.6 % 34.1 %
Food and beverage profit margin⁽²⁾ 36.6 % 39.5 % 37.1 % 36.6 %
Comparable hotel food and beverage profit margin⁽²⁾ 36.9 % 39.8 % 37.2 % 37.2 %
*Net income* $ 214 $ 260 $ 505 $ 378
Depreciation and amortization 168 162 337 334
Interest expense 45 37 94 73
Provision for income taxes 14 39 12 23
Gain on sale of property and corporate level
income/expense 6 10 (53 ) 17
Severance expense at hotel properties — — — 2
Property transaction adjustments⁽³⁾ — (3 ) (3 ) 16
Non-comparable hotel results, net⁽⁴⁾ 2 (15 ) (4 ) (48 )
*Comparable hotel EBITDA⁽¹⁾* $ 449 $ 490 $ 888 $ 795
___________
(1) See the Notes to Financial Information for a discussion of comparable hotel results, which are non-GAAP measures, and the limitations on their use. For additional information on comparable hotel EBITDA by location, see the Second Quarter 2023 Supplemental Financial Information posted on our website.
(2) Profit margins are calculated by dividing the applicable operating profit by the related revenue amount. GAAP profit margins are calculated using amounts presented in the unaudited condensed consolidated statements of operations. Comparable hotel margins are calculated using amounts presented in the following tables, which include reconciliations to the applicable GAAP results:
*Quarter ended June 30, 2023* *Quarter ended June 30, 2022* *Adjustments* *Adjustments* *GAAP Results* Non-comparable hotel results, net ⁽⁴⁾ Depreciation and corporate level items *Comparable Hotel Results* *GAAP Results* Property transaction adjustments ⁽³⁾ Non-comparable hotel results, net ⁽⁴⁾ Depreciation and corporate level items *Comparable Hotel Results*
*Revenues*
Room $ 850 $ (8 ) $ — $ 842 $ 850 $ (8 ) $ (22 ) $ — $ 820
Food and
beverage 415 (9 ) — 406 405 (3 ) (18 ) — 384
Other 128 (1 ) — 127 126 — (6 ) — 120
Total revenues 1,393 (18 ) — 1,375 1,381 (11 ) (46 ) — 1,324
*Expenses*
Room 201 (2 ) — 199 189 (3 ) (3 ) — 183
Food and
beverage 263 (7 ) — 256 245 (1 ) (13 ) — 231
Other 485 (11 ) — 474 440 (4 ) (15 ) — 421
Depreciation
and
amortization 168 — (168 ) — 162 — — (162 ) —
Corporate and
other
expenses 30 — (30 ) — 25 — — (25 ) —
Gain on
insurance and
business
interruption
settlements (3 ) — — (3 ) (7 ) — — 6 (1 )
Total expenses 1,144 (20 ) (198 ) 926 1,054 (8 ) (31 ) (181 ) 834
*Operating Profit - Comparable *
* hotel EBITDA* $ 249 $ 2 $ 198 $ 449 $ 327 $ (3 ) $ (15 ) $ 181 $ 490
*Year-to-date ended June 30, 2023* *Year-to-date ended June 30, 2022* *Adjustments* *Adjustments* *GAAP Results* Property transaction adjustments ⁽³⁾ Non-comparable hotel results, net ⁽⁴⁾ Depreciation and corporate level items *Comparable hotel Results* *GAAP Results* Severance at hotel properties Property transaction adjustments ⁽³⁾ Non-comparable hotel results, net ⁽⁴⁾ Depreciation and corporate level items *Comparable hotel Results*
*Revenues*
Room $ 1,670 $ (5 ) $ (18 ) $ — $ 1,647 $ 1,505 $ — $ (13 ) $ (57 ) $ — $ 1,435
Food and
beverage 846 (2 ) (18 ) — 826 702 — — (42 ) — 660
Other 258 — (3 ) — 255 248 — 4 (13 ) — 239
Total revenues 2,774 (7 ) (39 ) — 2,728 2,455 — (9 ) (112 ) — 2,334
*Expenses*
Room 394 (1 ) (4 ) — 389 349 — (13 ) (9 ) — 327
Food and
beverage 532 (1 ) (13 ) — 518 445 — (3 ) (27 ) — 415
Other 956 (2 ) (18 ) — 936 837 (2 ) (9 ) (28 ) — 798
Depreciation
and
amortization 337 — — (337 ) — 334 — — — (334 ) —
Corporate and
other
expenses 61 — — (61 ) — 48 — — — (48 ) —
Gain on
insurance and
business
interruption
settlements (3 ) — — — (3 ) (7 ) — — — 6 (1 )
Total expenses 2,277 (4 ) (35 ) (398 ) 1,840 2,006 (2 ) (25 ) (64 ) (376 ) 1,539
*Operating Profit - Comparable *
* hotel EBITDA* $ 497 $ (3 ) $ (4 ) $ 398 $ 888 $ 449 $ 2 $ 16 $ (48 ) $ 376 $ 795
(3) Property transaction adjustments represent the following items: (i) the elimination of results of operations of our hotels sold or held-for-sale as of the reporting date, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations, and (ii) the addition of results for periods prior to our ownership for hotels acquired as of the reporting date.
(4) Non-comparable hotel results, net, includes the following items: (i) the results of operations of our non-comparable hotels, which operations are included in our consolidated statements of operations as continuing operations, and (ii) gains on business interruption proceeds relating to events that occurred while the hotels were classified as non-comparable.
*HOST HOTELS & RESORTS, INC.*
*Reconciliation of Net Income to*
*EBITDA, EBITDAre and Adjusted EBITDAre ^(1)*
(unaudited, in millions)
*Quarter ended June 30,* *Year-to-date ended June 30,* *2023* *2022* *2023* *2022*
*Net income* $ 214 $ 260 $ 505 $ 378
Interest expense 45 37 94 73
Depreciation and amortization 168 162 337 334
Income taxes 14 39 12 23
*EBITDA* 441 498 948 808
Gain on dispositions⁽²⁾ — (1 ) (69 ) (13 )
Equity investment adjustments:
Equity in earnings of affiliates (4 ) (2 ) (11 ) (4 )
Pro rata EBITDAre of equity investments⁽³⁾ 9 11 22 21
*EBITDA**re* 446 506 890 812
Adjustments to EBITDAre:
Gain on property insurance settlement — (6 ) — (6 )
*Adjusted EBITDA**re* $ 446 $ 500 $ 890 $ 806
___________
(1) See the Notes to Financial Information for discussion of non-GAAP measures.
(2) Reflects the sale of one hotel in 2023 and three hotels in 2022.
(3) Unrealized gains of our unconsolidated investments are not recognized in our EBITDAre, Adjusted EBITDAre, NAREIT FFO or Adjusted FFO until they have been realized by the unconsolidated partnership.
*HOST HOTELS & RESORTS, INC.*
*Reconciliation of Diluted Earnings per Common Share to*
*NAREIT and Adjusted Funds From Operations per Diluted Share ^(1)*
(unaudited, in millions, except per share amounts)
*Quarter ended June 30,* *Year-to-date ended June 30,* *2023* *2022* *2023* *2022*
*Net income* $ 214 $ 260 $ 505 $ 378
Less: Net income attributable to non-controlling interests (4 ) (4 ) (8 ) (6 )
*Net income attributable to Host Inc.* 210 256 497 372
Adjustments:
Gain on dispositions⁽²⁾ — (1 ) (69 ) (13 )
Gain on property insurance settlement — (6 ) — (6 )
Depreciation and amortization 168 162 336 333
Equity investment adjustments:
Equity in earnings of affiliates (4 ) (2 ) (11 ) (4 )
Pro rata FFO of equity investments⁽³⁾ 6 8 16 17
Consolidated partnership adjustments:
FFO adjustments for non-controlling interests
of Host L.P. (3 ) (1 ) (4 ) (4 )
*NAREIT FFO* 377 416 765 695
Adjustments to NAREIT FFO:
Loss on debt extinguishment — — 4 —
*Adjusted FFO* $ 377 $ 416 $ 769 $ 695
*For calculation on a per share basis:⁽⁴⁾*
*Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO* 713.2 717.0 714.2 716.8
*Diluted earnings per common share* $ 0.29 $ 0.36 $ 0.70 $ 0.52
*NAREIT FFO per diluted share* $ 0.53 $ 0.58 $ 1.07 $ 0.97
*Adjusted FFO per diluted share* $ 0.53 $ 0.58 $ 1.08 $ 0.97
___________
(1-3) Refer to corresponding footnote on the Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre.
(4) Diluted earnings per common share, NAREIT FFO per diluted share and Adjusted FFO per diluted share are adjusted for the effects of dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans, preferred OP units held by non-controlling limited partners and other non-controlling interests that have the option to convert their limited partnership interests to common OP units. No effect is shown for securities if they are anti-dilutive.
*HOST HOTELS & RESORTS, INC.*
*Reconciliation of Net Income to *
*EBITDA, EBITDAre and Adjusted EBITDAre and Diluted Earnings per Common Share to*
*NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2023 Forecasts ^(1)*
(unaudited, in millions)
*Full Year 2023* *Low-end of range* *High-end of range*
*Net income* $ 700 $ 748
Interest expense 190 190
Depreciation and amortization 680 680
Income taxes 15 17
*EBITDA* 1,585 1,635
Gain on dispositions (69 ) (69 )
Equity investment adjustments:
Equity in earnings of affiliates (18 ) (19 )
Pro rata EBITDAre of equity investments 39 40
*EBITDA**re* 1,537 1,587
Adjustments to EBITDAre:
Gain on property insurance settlement⁽²⁾ (2 ) (2 )
*Adjusted EBITDA**re* $ 1,535 $ 1,585
*Full Year 2023* *Low-end of range* *High-end of range*
*Net income* $ 700 $ 748
Less: Net income attributable to non-controlling interests (11 ) (12 )
*Net income attributable to Host Inc.* 689 736
Adjustments:
Gain on dispositions (69 ) (69 )
Gain on property insurance settlement⁽²⁾ (2 ) (2 )
Depreciation and amortization 679 679
Equity investment adjustments:
Equity in earnings of affiliates (18 ) (19 )
Pro rata FFO of equity investments 27 28
Consolidated partnership adjustments:
FFO adjustment for non-controlling partnerships (1 ) (1 )
FFO adjustment for non-controlling interests of Host LP (8 ) (8 )
*NAREIT FFO* 1,297 1,344
Adjustments to NAREIT FFO:
Loss on extinguishment of debt 4 4
*Adjusted FFO* $ 1,301 $ 1,348
*Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO* 713.9 713.9
*Diluted earnings per common share* $ 0.97 $ 1.03
*NAREIT FFO per diluted share* $ 1.82 $ 1.88
*Adjusted FFO per diluted share* $ 1.82 $ 1.89
___________
(1) The Forecasts are based on the below assumptions:
· Comparable hotel RevPAR will increase 7.0% to 9.0% compared to 2022 for the low and high end of the forecast range.
· Comparable hotel EBITDA margins will decrease 210 to 170 basis points compared to 2022 for the low and high ends of the forecasted comparable hotel RevPAR range, respectively.
· We expect to spend approximately $625 million to $725 million on capital expenditures.
· Assumes no acquisitions and no additional dispositions during the year.
For a discussion of items that may affect forecast results, see the Notes to Financial Information.
(2) The insurance gain relates to proceeds in 2023 related to prior year insurance claims. 2023 Forecasts do not include any gains related to Hurricane Ian at this time, as timing of any recognition is uncertain.
*HOST HOTELS & RESORTS, INC. *
*Schedule of Comparable Hotel Results for Full Year 2023 Forecasts ^(1)*
(unaudited, in millions)
*Full Year 2023* *Low-end of range* *High-end of range*
Operating profit margin ^(2) 14.1 % 14.8 %
Comparable hotel EBITDA margin ^(2) 29.7 % 30.1 %
*Net income* $ 700 $ 748
Depreciation and amortization 680 680
Interest expense 190 190
Provision for income taxes 15 17
Gain on sale of property and corporate level income/expense (47 ) (48 )
Property transaction adjustments⁽³⁾ (3 ) (3 )
Non-comparable hotel results, net⁽⁴⁾ (17 ) (18 )
*Comparable hotel EBITDA*^* (1)* $ 1,518 $ 1,566
___________
(1) See "Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre and Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2023 Forecasts" for other forecast assumptions. Forecast comparable hotel results include 75 hotels (of our 77 hotels owned at June 30, 2023) that we have assumed will be classified as comparable as of December 31, 2023.
(2) Profit margins are calculated by dividing the applicable operating profit by the related revenue amount. GAAP profit margins are calculated using amounts presented in the unaudited condensed consolidated statements of operations. Comparable hotel margins are calculated using amounts presented in the following tables, which include reconciliations to the applicable GAAP results:
*Low-end of range* *High-end of range* *Adjustments* *Adjustments* *GAAP Results* Property transaction adjustments Non-comparable hotel results, net Depreciation and corporate level items *Comparable hotel Results* *GAAP Results* Property transaction adjustments Non-comparable hotel results, net Depreciation and corporate level items *Comparable hotel Results*
*Revenues*
Rooms $ 3,211 $ (5 ) $ (62 ) $ — $ 3,144 $ 3,271 $ (5 ) $ (64 ) $ — $ 3,202
Food and beverage 1,551 (2 ) (49 ) — 1,500 1,580 (2 ) (50 ) — 1,528
Other 484 — (12 ) — 472 487 — (12 ) — 475
Total revenues 5,246 (7 ) (123 ) — 5,116 5,338 (7 ) (126 ) — 5,205
*Expenses*
Hotel expenses 3,711 (4 ) (106 ) — 3,601 3,754 (4 ) (108 ) — 3,642
Depreciation and amortization 680 — — (680 ) — 680 — — (680 ) —
Corporate and other expenses 118 — — (118 ) — 118 — — (118 ) —
Gain on insurance and business interruption settlements⁽⁵⁾ (5 ) — — 2 (3 ) (5 ) — — 2 (3 )
Total expenses 4,504 (4 ) (106 ) (796 ) 3,598 4,547 (4 ) (108 ) (796 ) 3,639
*Operating Profit - Comparable hotel EBITDA* $ 742 $ (3 ) $ (17 ) $ 796 $ 1,518 $ 791 $ (3 ) $ (18 ) $ 796 $ 1,566
(3) Property transaction adjustments represent the following items: (i) the elimination of results of operations of our hotels sold or held-for-sale as of the reporting date, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations and (ii) the addition of results for periods prior to our ownership for hotels acquired as of the reporting date.
(4) Non-comparable hotel results, net, includes the following items: (i) the results of operations of our non-comparable hotels, which operations are included in our consolidated statements of operations as continuing operations, and (ii) gains on business interruption proceeds relating to events that occurred while the hotels were classified as non-comparable. The following hotels are expected to be non-comparable for full year 2023:
· Hyatt Regency Coconut Point Resort & Spa (business disruption due to Hurricane Ian beginning in September 2022, closed until November 2022); and
· The Ritz-Carlton, Naples (business disruption due to Hurricane Ian beginning in September 2022, closed until July 2023).
(5) The insurance gain relates to proceeds in 2023 related to prior year insurance claims. 2023 Forecasts do not include any gains related to Hurricane Ian at this time, as timing of any recognition is uncertain.
*HOST HOTELS & RESORTS, INC.*
*Notes to Financial Information*
*Forecasts*
Our forecast of net income, earnings per diluted share, NAREIT and Adjusted FFO per diluted share, EBITDA, EBITDAre, Adjusted EBITDAre and comparable hotel results are forward-looking statements and are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause actual results and performance to differ materially from those expressed or implied by these forecasts. Although we believe the expectations reflected in the forecasts are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that the results will not be materially different. Risks that may affect these assumptions and forecasts include the following: potential changes in overall economic outlook make it inherently difficult to forecast the level of RevPAR; the amount and timing of debt payments may change significantly based on market conditions, which will directly affect the level of interest expense and net income; the amount and timing of transactions involving shares of our common stock may change based on market conditions; and other risks and uncertainties associated with our business described herein and in our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC.
*Comparable Hotel Operating Statistics and Results*
Effective January 1, 2023, the Company ceased presentation of All Owned Hotel results and returned to a comparable hotel presentation for its hotel level results. Management believes this provides investors with a better understanding of underlying growth trends for the Company’s current portfolio, without impact from properties that experienced closures due to renovations or property damage sustained.
To facilitate a year-to-year comparison of our operations, we present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in our reports on a comparable hotel basis in order to enable our investors to better evaluate our operating performance. We define our comparable hotels as those that: (i) are owned or leased by us as of the reporting date and are not classified as held-for-sale; and (ii) have not sustained substantial property damage or business interruption, or undergone large-scale capital projects in each case requiring closures lasting one month or longer (as further defined below) during the reporting periods being compared.
We make adjustments to include recent acquisitions to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results. Additionally, operating results of hotels that we